Commentary

Lobbying sharks already circling in anticipation of GOP takeover in Congress

Loan sharksIt’s one thing for progressive pundits and advocates to talk in generalities about what the election of Thom Tillis and his conservative colleagues to the U.S. Senate will mean in the policy world next year, but here’s a much more concrete and troubling example of what we have to look forward to. According to a pair of global banking giants, scalawag, for-profit colleges are now a hot investment opportunity.

As reported this morning by Alan Pyke at Think Progress:

Investment advisers from both Credit Suisse and BMO Capital Markets issued research notes this week connecting the Republican victories on Tuesday to an improved outlook for education companies. The analyses were based primarily on future legislative predictions. The Higher Education Act needs to be renewed, and BMO’s Jeffrey Silber argued that a Republican Senate will produce a bill that is much friendlier to the companies that run for-profit schools, according to Buzzfeed. Credit Suisse wrote in Barron’s that the “diminished regulatory risk characteristics of a Republican-controlled electorate” makes student lending company stocks likely to rise in value because “Republicans have historically fought detrimental legislation originating from Congressional Democrats.”

Here’s what that means when translated to everyday English: With conservatives exercising complete control over Congress, lobbyists for all sort of sharks and con artists will be like pigs in slop more than ever before. And one of the top scamming industries these days in modern America is the for-profit college business. As the article notes:

The companies that operate these high-cost, low-value degree-granting institutions are immensely profitable, spend a billion dollars more on recruiting than on educating annually, and reward their executive officers with massive pay packages. In many cases, these companies get 90 percent of their income from federal student loan dollars.

Here in North Carolina, our colleagues at the North Carolina Justice Center have recently launched a consumer protection initiative to respond to what is already a toxic and predatory industry. Click here to learn more. Sadly, from the looks, of things in D.C., their work in responding to consumer rip-offs is about to expand dramatically.

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